Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Concerned about child benefit and tax credits? Here’s what you need to know

Image: Shutterstock
Image: Shutterstock

As the bank holiday weekend approaches, thousands of families have seen changes to their Child Benefit. We asked the Citizens Advice Bureau what it’s all about.

The phrase ‘cost of living crisis’ has been repeated so many times it’s starting to sound like a cliche. But for thousands of families, it’s a grim daily reality.

Child Benefit and Child Tax Credits are the latest issues to get people worried. Enquiries to help services have shot up as families try to get to grips with the complex benefits system.

Councillor Alasdair Christie is manager of the Inverness, Badenoch and Strathspey Citizens Advice Bureau (CAB). Here’s his pointers.

Alasdair Christie of Citizens Advice Bureau. Photo: Sandy McCook

Why has my Child Benefit payment reduced?

The Government pays Child Benefit to one person who is raising a child under 16 – or under 20 if they’re in approved education or training.

It’s paid every four weeks at a rate of £21.80 per week for the first child, and £14.45 for others. There’s no limit on the number of children a parent can receive benefit for.

Many parents were recently confused to get a payment earlier than scheduled. According to the HMRC, there’s no need to worry. The Government sent the money early due to the bank holidays for the jubilee.

In some cases the payments were split in two, but they should add up to the usual amount.

Families in receipt of Child Benefit should have received their payment by now.

However, if you’re concerned, you can get in touch with HMRC or your local CAB.

When should I move to Universal Credit?

Mr Christie says many people have had calls encouraging them to make the switch early, from Child Tax Credits to Universal Credit payments. CAB’s advice, is not to rush into anything.

“We’re telling people to check the situation, come to talk to CAB and make sure it’s in your interests,” says Mr Christie. “Switching to Universal Credit can actually reduce income. It varies from circumstance to circumstance depending on what other benefits folk have.

“Come in, talk to us, before just going ahead and changing.”

Why could Universal Credit make me worse off?

Mr Christie says some people receive ‘legacy benefits’ and other benefits that can be lost on making the switch to Universal Credit. However, he stresses it’s very much a unique picture for each person.

“It’s not as straight forward as Universal Credit is the same as Child Tax Credits,” he says. “Sometimes it is, sometimes it’s not. People just need to take advice about what it means to them.”

Do we have to make the switch?

The DWP expect all households claiming legacy benefits and Child Tax Credits to have moved across to Universal Credit by September 2024.

“At some point people won’t have a choice, but as long as they do have that choice, they should check carefully,” says Mr Christie.

“Universal Credit was always about saving the Government expenditure,” he adds. “It was never about improving people’s living income. It was prefaced on driving money out of the benefits system.”

Of course, the UK Government says otherwise. Its guidance says the new system is fairer, because it ‘makes work pay’. It’s also simpler, rolling six benefits and credits into one monthly payment.

What challenges are families facing now?

Rising prices for fuel and food are adding to the strain on all families. Photo: Shutterstock

Mr Christie says people are facing “a perfect storm”.

“We’re seeing people every day that are concerned and just can’t cope with their day to day finances and the pressure that’s being placed upon them, with fuel increases, the National Insurance that went through in April.

“People are going to the supermarket and seeing things that cost £1 now cost £1.10. It’s affecting people across the spectrum.

“The impact of the poverty trap, is people are not living their best life.”

Where can I go for advice?

Mr Christie emphasises that these issues no longer affect just the few. Sadly, they have touched most people’s lives.

“You shouldn’t feel any stigma or apprehension about seeking advice and support,” he says.

Key contacts

The Money Advice Service – free, impartial advice service set up by government

Money Talk Team – Scottish Government service for older people and families

Citizens Advice Bureau – face-to-face advice at 59 branches across Scotland

More from the Schools & Family team

POLL: Should Highland Council offer more help to get rural kids to school?

From Zimbabwe to Ellon: Covid widow’s ‘anxiety and distress’ in visa battle for kids

Inverness STEM students take top prize

Conversation